Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
US equities jump
On Friday, US equities gained, with the S&P 500 as well as the Nasdaq reaching all-time maximums right after Fed Chair Jerome Powell told that the main US financial institution’s current approach to interest rate lifts turned out to be the best way to protect the American economic revival.
Gradual rate lifts also appear to be the best way to keep job surge as firm as possible and also inflation under control, as Powell pointed out. His remarks failed to change market expectations of a rate lift in September and then in December.
A dip in the evergreen buck after Powell's remarks assisted to back metal and crude prices. As a matter of fact, the materials sector SPLRCM managed to rally by 1.33%, which turns out to be the best outcome amidst the 11 S&P sectors. As for the energy sector SPNY, it leapt by 1.03%.
Additionally, the KBW bank index jumped by 0.24%, which is less than the broader S&P financials index's 0.42% leap.
Economic data backed market sentiment too. In July, new orders for primary American capital products soared more than anticipated, while shipments surge stood firm enough, as the Commerce Department told.
The Dow Jones Industrial Average soared by 0.62% hitting 25,815.03. Besides this, the S&P 500 managed to ascend by 0.64% reaching 2,875.27, while the Nasdaq Composite jumped by 0.85% coming up with 7,945.56.
The small-cap Russell 2000 index tacked on by 0.53%.
Netflix jumped by 4.8% right after SunTrust Robinson Humphrey had the stock upgraded to the status "buy," telling that current-quarter subscriber surge was solidly in line or ahead of forecasts.
Autodesk jumped by 15.2%, which is the best outcome on the S&P. It became possible after the software maker's quarterly outcomes surpassed forecasts.
Moreover, Gap Inc slumped 10%, Foot Locker declined by 11.7% after the two retailers reported downbeat same-store sales.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!